BILL NUMBER: SB 1535	CHAPTERED  09/27/00

	CHAPTER   768
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 26, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	AMENDED IN ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   JULY 3, 2000
	AMENDED IN ASSEMBLY   JUNE 14, 2000

INTRODUCED BY   Senator Costa

                        FEBRUARY 17, 2000

   An act to amend Sections 55523, 55722.5, 55882, 55901, 55922,
56133.5, 56382.5, 56621, 56631, and 56652 of the Food and
Agricultural Code, relating to agricultural licensing.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1535, Costa.  Farm products processors:  licensing.
   (1) Existing law sets forth procedures governing the licensure by
the Department of Food and Agriculture of farm products processors
and their agents.  Existing law requires that applicants for a
processor's license sign a notice that the department may obtain
criminal record information during the course of licensing
investigation, as specified.
   This bill would authorize the above-described notice to be signed
by the applicant's designated representative.
   (2) Existing law prescribes misdemeanors for specified violations
involving processors of farm products and produce dealers.
   This bill would authorize the department to recover specified
investigative costs with respect to any of these violations.  This
bill would permit a person responsible for investigative costs as
imposed by the provisions of this bill to obtain an audit of the
department's investigative costs, as specified.
   (3) Existing law prohibits, except as provided, a licensee, as
defined, from employing a person as an agent, where that person has
had a specified license revoked, or committed violations of specified
provisions of the Food and Agricultural Code.  Violation of these
provisions is punishable as a misdemeanor.
   This bill would , in addition, expand the prohibition to the
employment, by the licensee, of any person who previously was an
agent, and who meets the prohibitory criteria.  By expanding the
scope of an existing crime, this bill would impose a state-mandated
local program.
   (4) Existing law makes it a misdemeanor for a person licensed as a
farm products processor or as a produce dealer to fail, neglect, or
refuse to remit to the director any assessments that are levied on
producers pursuant to provisions of law relating to state commissions
that aid the marketing of specified products.
   This bill would include additional commissions that would be
subject to this misdemeanor provision.  By expanding the scope of an
existing crime, the bill would impose a state-mandated local program.

   (5) This bill would also incorporate additional amendments to
Sections 55901, 55922, 56631, and 56652 of the Food and Agricultural
Code proposed by AB 2630, to be operative if AB 2630 and this bill
are both enacted.
  (6) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 55523 of the Food and Agricultural Code is
amended to read:
   55523.  (a) Each application shall state all of the following:
   (1) The full name of the applicant.
   (2) If the applicant is a firm, exchange, association, or
corporation, the full name of each member of the firm or the names of
the officers of the exchange, association, or corporation.
   (3) The principal business address of the applicant in this state.

   (4) The name of every person who is authorized to receive and
accept service of summons for the applicant.
   (5) A release authorizing the department, during consideration of
the application and for the duration of licensure, to have access to
and obtain financial information from both of the following:
   (A) The applicant's files with credit reporting agencies.
   (B) The applicant's files with banks, savings and loan
associations, or any other financial institutions with whom the
applicant has done business in the past or with whom the applicant
intends to do business during the year of licensure.
   (6) A notice signed by the applicant or the applicant's
representative that the department may obtain criminal record
information during the course of a licensing investigation or upon
presentation with a reasonable basis to believe the licensee has been
convicted of a crime.  An applicant whose application is incomplete
shall be given written notice that a failure to complete the
application within 60 calendar days shall result in denial of the
application.
   (b) The documents and information procured pursuant to this
section shall be considered the records of a consumer and shall not
be construed to be a public record.  The documents and information
shall remain confidential, except in actions brought by the
department to enforce this division, or as a result of the issuance
of a subpoena in accordance with Section 1985.4 of the Code of Civil
Procedure.  The unauthorized release of the documents received from
the Department of Justice or the information contained in those
documents, is a misdemeanor.
  SEC. 2.  Section 55722.5 of the Food and Agricultural Code is
amended to read:
   55722.5.  (a) An aggrieved grower or licensee with a complaint
that is not subject to the federal Packers and Stockyards Act, 1921
(7 U.S.C. Sec.  181, et seq.) or the federal Perishable Agricultural
Commodities Act, 1930 (7 U.S.C. Sec. 499a et seq.) may seek
resolution of that complaint by filing a complaint with the
department within nine months from the date a complete account of
sales was due.  The complaint shall be accompanied by two copies of
all documents in the complainant's possession that are relevant to
establishing the complaint, a filing fee of sixty dollars ($60), and
a written denial of jurisdiction from the appropriate federal agency
unless the commodity involved clearly does not fall under either the
federal Packers and Stockyards Act, 1921 (7 U.S.C. Sec. 181, et seq.)
or the federal Perishable Agricultural Commodities Act, 1930 (7
U.S.C. Sec. 499a et seq.).  Within five business days of receipt of a
signed and verified complaint, the filing fee, and the denials of
federal jurisdiction, the department shall serve the verified
complaint on the respondent.  Service shall be by certified mail.
The department, the secretary, the department's employees, the
department's agents, the boards and commissions associated with the
department, their employees or agents, and the State of California
are not parties to the dispute in a proceeding brought under this
section.
   (b) The respondent served shall answer within 30 calendar days of
service.  The respondent's response shall include two copies of all
relevant documentation of the transactions referred to in the
verified complaint.
   (c) Within 30 calendar days of receipt of the answer, the
department shall issue to both parties a written factual summary on
the basis of the documents that have been filed with the department.

   (d) If a settlement is not reached within 30 calendar days after
the department's summary is issued, the department, on request of the
claimant or respondent and upon payment of a filing fee of three
hundred dollars ($300), shall schedule alternate dispute resolution,
to commence within 90 calendar days.  The department shall serve both
parties with a notice of hearing, which sets out the time, date,
street address, room number, telephone number, and name of the
hearing officer.  Service of the notice of hearing shall be by
certified mail.
   (e) The alternate dispute resolution shall proceed as follows:
   (1) The hearing shall be conducted by hearing officers in
accordance with standard procedures promulgated by the American
Arbitration Association or other acceptable alternative dispute
resolution entities.
   (2) The hearing officers shall be familiar with the type of issues
presented by such claims, but need not be attorneys.
   (3) The sole parties to the proceedings shall be the complainant
and the respondent.
   (4) The disputes, claims, and interests of the department or the
State of California are not within the jurisdiction of the
proceedings.
   (5) The validity of a regulation of the department or order
promulgated pursuant to this code is not within the jurisdiction of
the proceedings.
   (6) Law and motion matters shall be handled by the assigned
hearing officer.
   (7) The hearing officer has no authority to enter into settlement
discussions except upon stipulation of the parties involved.
   (8) The parties may represent themselves in propria persona or may
be represented by a licensed attorney at law.  A party may not be
represented by a representative who is not licensed to practice law.

   (9) To the extent of any conflict between any provision of Chapter
4.5 (commencing with Section 11400) of Part 1 of Division 3 of Title
2 of the Government Code and this article, this article shall
prevail.
   (10) The hearing officer may order a review of records or an audit
of records by a certified public accountant.  The review or audit
shall be conducted under generally accepted auditing standards of the
American Institute of Certified Public Accountants, and upon
completion of the review or audit the nature and extent of the review
or audit shall be disclosed to the parties by the auditor in the
audit report.  The audit report shall disclose the number of
transactions reviewed and the rationale for selecting those
transactions.  The department shall advance the costs of the audit or
review of records, but the hearing officer shall apportion the costs
at the conclusion of the hearing.  The department shall pursue
repayment in accordance with the hearing officer's apportionment and
may bring an action in a court of competent jurisdiction to recover
funds advanced.  Nothing in this subdivision shall be construed to
require the department to pursue any specific remedy or to prohibit
the department from accepting a reasonable repayment plan.
   (f) The hearing officer shall render a written decision within 60
days of submission of the case for decision.  In addition to
rendering a written finding as to what is owed by whom on the
substantive allegations of the complaint, the hearing officer shall
decide whether or not to order the full cost of the alternative
dispute resolution proceeding, and in what ratio or order the losing
party is to pay the costs of the proceeding.  For these purposes, the
cost of the alternative dispute resolution proceeding does not
include the filing fee, the parties' attorney fees, or expert witness
fees.  The hearing officer may also award a sanction against a
complainant for filing a frivolous complaint or against a respondent
for unreasonable delay tactics, bad faith bargaining, or resistance
to the claim, of either 10 percent of the amount of the award or a
specific amount, up to a maximum of one thousand dollars ($1,000).
Any sanction award shall not be deemed to be res judicata or
collateral estoppel in any subsequent case in which either the
complainant or respondent are charged with filing a frivolous
complaint, unreasonable delay tactics, bad faith bargaining, or
resistance to the claim.  The department may consider the written
decision of the hearing officer in determining any related licensing
action.  The written decision of the hearing officer may be
introduced as evidence at a court proceeding.
   (g)  Nothing in this section prohibits the parties to the dispute
from settling their dispute prior to, during, or after the hearing.
   (h)  Nothing in this section alters, precludes, or conditions the
exercise, during any stage of the proceedings provided by this
chapter, of any other rights to relief a party may have through
petition to a court of competent jurisdiction, including, but not
limited to, small claims court.
  SEC. 3.  Section 55882 of the Food and Agricultural Code is amended
to read:
   55882.  It is a violation of this chapter if a licensee fails,
neglects, or refuses to collect or remit any assessments that have
been levied in accordance with the assessment provisions of Article
10 (commencing with Section 58921) of Chapter 1 or Article 12
(commencing with Section 59941) of Chapter 2 of Part 2 of Division
21, or Article 8 (commencing with Section 64691) of Chapter 2,
Chapter 3, (commencing with Section 65500), Article 5 (commencing
with Section 66621) of Chapter 4, Article 6 (commencing with Section
67101) of Chapter 5, Article 6 (commencing with Section 68101) of
Chapter 6, Article 6 (commencing with Section 69081) of Chapter 7,
Chapter 9.5 (commencing with Section 71000), Article 6 (commencing
with Section 72101) of Chapter 10, Chapter 12.6 (commencing with
Section 74701), Chapter 12.7 (commencing with Section 74801), Article
6 (commencing with Section 75131) of Chapter 13, Article 8
(commencing with Section 75631) of Chapter 13.5, Article 6
(commencing with Section 76141) of Chapter 14,  Chapter 15
(commencing with Section 76201), Chapter 16.5 (commencing with
Section 77001), Chapter 17 (commencing with Section 77201), Chapter
17.5 (commencing with Section 77401), Chapter 19 (commencing with
Section 77701), Chapter 20 (commencing with Section 77901), Article 6
(commencing with Section 78285) of Chapter 21, or Article 6
(commencing with Section 78700) of Chapter 24, of Part 2 of Division
22.
  SEC. 4.  Section 55901 of the Food and Agricultural Code is amended
to read:
   55901.  (a) Except as specified in Section 55902, any misdemeanor
which is prescribed by this article is punishable by a fine of not
less than five hundred dollars ($500) or more than two thousand
dollars ($2,000), by imprisonment in the county jail for not more
than one year, or by both the fine and imprisonment.
   (b) For a violation of the offense described in subdivision (a),
the department may recover investigative costs, excluding attorneys'
fees and administrative overhead, for those charges where there has
been a conviction in a court of law, or a  court-supervised
settlement has been reached.  Nothing in this section allows the
department to recover investigative costs for an administrative
licensing action or any action that has not been filed in a court of
law.
   (c) Any person or entity responsible for investigative costs under
this section shall be allowed to audit the department's
investigative costs.  The audit must be performed by a third-party
certified public accountant and paid for by the person or entity
requesting the audit.  The department shall adopt regulations to
implement this subdivision by June 1, 2002.
  SEC. 4.5.  Section 55901 of the Food and Agricultural Code is
amended to read:
   55901.  (a) Except as specified in Section 55902, any misdemeanor
which is prescribed by this article is punishable by a fine of not
less than five hundred dollars ($500) or more than  five thousand
dollars ($5,000), by imprisonment in the county jail for not more
than one year, or by both that fine and imprisonment.
   (b) For a violation of the offense described in subdivision (a),
the department may recover investigative costs, excluding attorneys'
fees and administrative overhead, for those charges where there has
been a conviction in a court of law, or a  court-supervised
settlement has been reached.  Nothing in this section allows the
department to recover investigative costs for an administrative
licensing action or any action that has not been filed in a court of
law.
   (c) Any person or entity responsible for investigative costs under
this section shall be allowed to audit the department's
investigative costs.  The audit must be performed by a third-party
certified public accountant and paid for by the person or entity
requesting the audit.  The department shall promulgate regulations to
implement this subdivision by June 1, 2002.
  SEC. 5.  Section 55922 of the Food and Agricultural Code is amended
to read:
   55922.  (a) Any person that violates any provision of this chapter
is liable civilly in the sum of five hundred dollars ($500) for each
and every violation, such sum to be recovered in an action by the
director in any court of competent jurisdiction.  All sums which are
recovered under this section shall be deposited in the State Treasury
to the credit of the Department of Food and Agriculture Fund.
   (b) For a violation of the offense described in subdivision (a),
the department may recover investigative costs, excluding attorneys'
fees and administrative overhead, for those charges where there has
been a conviction in a court of law, or a  court-supervised
settlement has been reached.  Nothing in this section allows the
department to recover investigative costs for an administrative
licensing action or any action that has not been filed in a court of
law.
   (c) Any person or entity responsible for investigative costs under
this section shall be allowed to audit the department's
investigative costs.  The audit must be performed by a third-party
certified public accountant and paid for by the person or entity
requesting the audit.  The department shall promulgate regulations to
implement this subdivision by June 1, 2002.
  SEC. 5.5.  Section 55922 of the Food and Agricultural Code is
amended to read:
   55922.  (a) Any person that violates any provision of this chapter
is liable civilly in the sum of not less than five hundred dollars
($500) or more than one thousand dollars ($1,000) for each and every
violation, this sum to be recovered in an action by the  secretary in
any court of competent jurisdiction.  All sums which are recovered
under this section shall be deposited in the State Treasury to the
credit of the Department of Food and Agriculture Fund.
   (b) For a violation of the offense described in subdivision (a),
the department may recover investigative costs, excluding attorneys'
fees and administrative overhead, for those charges where there has
been a conviction in a court of law, or a  court-supervised
settlement has been reached.  Nothing in this section allows the
department to recover investigative costs for an administrative
licensing action or any action that has not been filed in a court of
law.
   (c) Any person or entity responsible for investigative costs under
this section shall be allowed to audit the department's
investigative costs.  The audit must be performed by a third-party
certified public accountant and paid for by the person or entity
requesting the audit.  The department shall promulgate regulations to
implement this subdivision by June 1, 2002.
  SEC. 6.  Section 56133.5 of the Food and Agricultural Code is
amended to read:
   56133.5.  (a) Except pursuant to an exemption granted by the
department, no person licensed under this chapter shall employ any
person as an agent, or who previously was an agent, who meets any of
the following criteria:
   (1) Whose license has been revoked or is currently suspended.
   (2) Who has committed any one flagrant or repeated violations of
this chapter or Chapter 6 (commencing with Section 55401).
   (3) Who failed to pay a producer's claims for which the person,
or, where the person controlled the decision to pay, the person's
employer, was liable, and which arose out of the conduct of a
business licensed or required to be licensed under this chapter or
Chapter 6 (commencing with Section 55401).
   (4) Who has been convicted of a crime that includes as one of its
elements the financial victimization of another person.
   (b) The department may approve employment of any person covered by
subdivision (a) if the licensee furnishes and maintains a surety
bond in form and amount satisfactory to the department, but that
shall not be less than ten thousand dollars ($10,000), as assurance
that the licensee's business will be conducted in accordance with
this chapter and that the licensee will pay all amounts due farm
products creditors.  The department may approve employment without a
surety bond after the expiration of four years from the effective
date of the applicable disciplinary order.  The department, based on
changes in the nature and volume of business conducted by the
licensee, may require an increase or authorize a reduction in the
amount of the bond, but in no case shall the bond be reduced below
ten thousand dollars ($10,000).  A licensee who is notified by the
department to provide a bond in an increased amount shall do so
within a reasonable time to be specified by the department.  If the
licensee fails to do so, the approval of employment shall
automatically terminate.  The department may suspend or revoke the
license of any licensee who, after the date given in the notice,
continues to employ any person in violation of this section.
   (c) The department may obtain access to a licensee's or person's
criminal record during the course of a licensing investigation opened
for other reasons or if the department is presented with a
reasonable basis to believe a person or licensee satisfies any of the
criteria set forth in paragraphs (1) to (4), inclusive, of
subdivision (a).  The Department of Justice shall furnish criminal
record information to the department at the department's request.  If
the information thereby obtained reveals a conviction for a crime
that includes as one of its elements the financial victimization of
another person, the department shall bring this to the attention of
the licensee and the person by a written notice.  This written notice
shall set out the charges against the licensee or person, prohibit
employment or revoke or deny the license effective if and when any
rights to an administrative hearing have been exhausted, and set out
the licensee's or person's rights under this section.
   (d) The department may grant an exemption on presentation of
substantial, clear, and convincing evidence to support a reasonable
belief as to any of the following:
   (1) There has been a mistake of fact or identity.
   (2) The present role of the person provides no opportunity for a
repeat of the prior behavior.
   (3) The person has been rehabilitated.
   All submissions shall be authenticated and verified under penalty
of perjury.  Unless the licensee or person can prove one of these
three elements by substantial, clear, and convincing evidence, the
department shall deny the request for exemption.
   (e) (1) A licensee or person who has been identified by the
department as satisfying any of the criteria set forth in paragraphs
(1) to (4), inclusive, of subdivision (a) and who has not been
granted an exemption by the department shall be afforded a hearing
upon the licensee's or person's request under this chapter.  The
licensee or person shall not have a right of hearing if the
department did not notify the employer or deny an exemption.
   (2) At the hearing, the department shall have the burden to prove
that any of the criteria set forth in paragraphs (1) to (4),
inclusive, of subdivision (a) are satisfied by a preponderance of the
evidence.  It shall be the licensee's or person's burden to prove
rehabilitation by substantial, clear, and convincing evidence.
   (3) In the case of a criminal conviction, "convicted of a crime"
includes a plea or verdict of guilty or a conviction following a plea
of nolo contendere.  Any action that the department is permitted to
take following the establishment of a conviction may be taken when
the time for appeal has elapsed, the judgment of conviction has been
affirmed on appeal, or when an order granting probation is made
suspending the imposition of sentence, notwithstanding a subsequent
order pursuant to Sections 1203.4 and 1203.4a of the Penal Code
permitting the person to withdraw his or her plea of guilty and to
enter a plea of not guilty, or setting aside the verdict of guilty,
or dismissing the accusation, information, or indictment.  For
purposes of this section or any other provision of this chapter, the
record of a conviction, or a copy thereof certified by the clerk of
the court or by a judge of the court in which the conviction
occurred, shall be conclusive evidence of the conviction.
   (4) For purposes of this section or any other provision of this
chapter, a certified copy of a decision and order or minutes of court
in which a finding is made concerning any of the criteria set forth
in paragraphs (1) to (3), inclusive, of subdivision (a), is prima
facie evidence of the truth of the charge and collateral estoppel
applies.
   (f) The documents and information procured pursuant to this
section shall be considered the records of a consumer and shall not
be construed to be a public record.  The documents and information
shall remain confidential, except in actions brought by the
department to enforce this division, or as a result of the issuance
of a subpoena in accordance with Section 1985.4 of the Code of Civil
Procedure.  The unauthorized release of the documents received from
the Department of Justice or the information contained in those
documents, is a misdemeanor.
  SEC. 7.  Section 56382.5 of the Food and Agricultural Code is
amended to read:
   56382.5.  (a) An aggrieved grower or licensee with a complaint
that is not subject to the federal Packers and Stockyards Act, 1921
(7 U.S.C. Sec.  181, et seq.) or the federal Perishable Agricultural
Commodities Act, 1930 (7 U.S.C. Sec. 499a et seq.) may seek
resolution of that complaint by filing a complaint with the
department within nine months from the date a complete account of
sales was due.  The complaint shall be accompanied by two copies of
all documents in the complainant's possession that are relevant to
establishing the complaint, a filing fee of sixty dollars ($60), and
a written denial of jurisdiction from the appropriate federal agency
unless the commodity involved clearly does not fall under the federal
Packers and Stockyards Act, 1921 (7 U.S.C. Sec. 181, et seq.) or the
federal Perishable Agricultural Commodities Act, 1930 (7 U.S.C. Sec.
499a et seq.).  Within five business days of receipt of a signed and
verified complaint, the filing fee, and the denials of federal
jurisdiction, the department shall serve the verified complaint on
the respondent.  Service shall be by certified mail.  The department,
the secretary, the department's employees, the department's agents,
the boards and commissions associated with the department, their
employees or agents, and the State of California are not parties to
the dispute in a proceeding brought under this section.
   (b) The respondent served shall answer within 30 calendar days of
service.  Respondent's response shall include two copies of all
relevant documentation of the transactions referred to in the
verified complaint.
   (c) Within 30 calendar days of receipt of the answer, the
department shall issue to both parties a written factual summary on
the basis of the documents that have been filed with the department.

   (d) If a settlement is not reached within 30 calendar days after
the department's summary is issued, the department, on request of the
claimant or respondent and upon payment of a filing fee of three
hundred dollars ($300), shall schedule alternate dispute resolution,
to commence within 90 calendar days.  The department shall serve both
parties with a notice of hearing, which sets out the time, date,
street address, room number, telephone number, and name of the
hearing officer.  Service of the notice of hearing shall be by
certified mail.
   (e) The alternate dispute resolution shall proceed as follows:
   (1) The hearing shall be conducted by hearing officers in
accordance with standard procedures promulgated by the American
Arbitration Association or other acceptable alternative dispute
resolution entities.
   (2) The hearing officers shall be familiar with the type of issues
presented by such claims, but need not be attorneys.
   (3) The sole parties to the proceedings shall be the complainant
and the respondent.
   (4) The disputes, claims, and interests of the department or the
State of California are not within the jurisdiction of the
proceedings.
   (5) The validity of a regulation of the department or order
promulgated pursuant to this code is not within the jurisdiction of
the proceedings.
   (6) Law and motion matters shall be handled by the assigned
hearing officer.
   (7) The hearing officer has no authority to enter into settlement
discussions except upon stipulation of the parties involved.
   (8) The parties may represent themselves in propria persona or may
be represented by a licensed attorney at law.  A party may not be
represented by a representative who is not licensed to practice law.

   (9) To the extent of any conflict between any provision of Chapter
4.5 (commencing with Section 11400) of Part 1 of Division 3 of Title
2 of the Government Code and this article, this article shall
prevail.
   (10) The hearing officer may order a review of records or an audit
of records by a certified public accountant.  The review or audit
shall be conducted under generally accepted auditing standards of the
American Institute of Certified Public Accountants, and upon
completion of the review or audit the nature and extent of the review
or audit shall be disclosed to the parties by the auditor in the
audit report.  The audit report shall disclose the number of
transactions reviewed and the rationale for selecting those
transactions.  The department shall advance the costs of the audit or
review of records, but the hearing officer shall apportion the costs
at the conclusion of the hearing.  The department shall pursue
repayment in accordance with the hearing officer's apportionment and
may bring an action in a court of competent jurisdiction to recover
funds advanced.  Nothing in this subdivision shall be construed to
require the department to pursue any specific remedy
                          or to prohibit the department from
accepting a reasonable repayment plan.
   (f) The hearing officer shall render a written decision within 60
days of submission of the case for decision.  In addition to
rendering a written finding as to what is owed by whom on the
substantive allegations of the complaint, the hearing officer shall
decide whether or not to order the full cost of the alternative
dispute resolution proceeding, and in what ratio or order the losing
party is to pay the costs of the proceeding.  For these purposes, the
cost of the alternative dispute resolution proceeding does not
include the filing fee, the parties' attorney fees, or expert witness
fees.  The hearing officer may also award a sanction against a
complainant for filing a frivolous complaint or against a respondent
for unreasonable delay tactics, bad faith bargaining, or resistance
to the claim, of either 10 percent of the amount of the award or a
specific amount, up to a maximum of one thousand dollars ($1,000).
Any sanction award shall not be deemed to be res judicata or
collateral estoppel in any subsequent case in which either the
complainant or respondent are charged with filing a frivolous
complaint, unreasonable delay tactics, bad faith bargaining, or
resistance to the claim.  The department may consider the written
decision of the hearing officer in determining any related licensing
action.  The written decision of the hearing officer may be
introduced as evidence at a court proceeding.
   (g)  Nothing in this section prohibits the parties to the dispute
from settling their dispute prior to, during, or after the hearing.
   (h)  Nothing in this section alters, precludes, or conditions the
exercise, during any stage of the proceedings provided by this
chapter, of any other rights to relief a party may have through
petition to a court of competent jurisdiction, including, but not
limited to, small claims court.
  SEC. 8.  Section 56621 of the Food and Agricultural Code is amended
to read:
   56621.  It is a violation of this chapter if a licensee fails,
neglects, or refuses to collect or remit any assessments that have
been levied in accordance with the assessment provisions of Article
10 (commencing with Section 58921) of Chapter 1 or Article 12
(commencing with Section 59941) of Chapter 2 of Part 2 of Division
21, or Article 8 (commencing with Section 64691) of Chapter 2,
Chapter 3 (commencing with Section 65500) of Part 2 of Division 22,
Article 5 (commencing with Section 66621) of Chapter 4, Article 6
(commencing with Section 67101) of Chapter 5, Article 6 (commencing
with Section 68101) of Chapter 6, Article 6 (commencing with Section
69081) of Chapter 7, Chapter 9.5 (commencing with Section 71000),
Article 6 (commencing with Section 72101) of Chapter 10, Chapter 12.6
(commencing with Section 74701), Chapter 12.7 (commencing with
Section 74801), Article 6 (commencing with Section 75131) of Chapter
13, Article 6 (commencing with Section 76141) of Chapter 14, Chapter
15 (commencing with Section 76201), Chapter 16.5 (commencing with
Section 77001), Chapter 17 (commencing with Section 77201), Chapter
17.5 (commencing with Section 77401), Chapter 19 (commencing with
Section 77701), Chapter 20 (commencing with Section 77901) of Article
6 (commencing with Section 78285) of Chapter 21, or Article 6
(commencing with Section 78700) of Chapter 24, of Part 2 of Division
22.
  SEC. 9.  Section 56631 of the Food and Agricultural Code is amended
to read:
   56631.  (a) Except as specified in Section 56632, any misdemeanor
which is prescribed in this article is punishable by a fine of not
less than five hundred dollars ($500) or more than two thousand
dollars ($2,000), by imprisonment in the county jail for not more
than one year, or by both the fine and imprisonment.
   (b) For a violation of the offense described in subdivision (a),
the department may recover investigative costs, excluding attorneys'
fees and administrative overhead, for those charges where there has
been a conviction in a court of law, or a court-supervised settlement
has been reached.  Nothing in this section allows the department to
recover investigative costs for an administrative licensing action or
any action that has not been filed in a court of law.
   (c) Any person or entity responsible for investigative costs under
this section shall be allowed to audit the department's
investigative costs.  The audit must be performed by a third-party
certified public accountant and paid for by the person or entity
requesting the audit.  The department shall promulgate regulations to
implement this subdivision by June 1, 2002.
  SEC. 9.5.  Section 56631 of the Food and Agricultural Code is
amended to read:
   56631.  (a) Except as specified in Section 56632, any misdemeanor
which is prescribed in this article is punishable by a fine of not
less than five hundred dollars ($500) or more than five thousand
dollars ($5,000), by imprisonment in the county jail for not more
than one year, or by both the fine and imprisonment.
   (b) For a violation of the offense described in subdivision (a),
the department may recover investigative costs, excluding attorneys'
fees and administrative overhead, for those charges where there has
been a conviction in a court of law, or a  court-supervised
settlement has been reached.  Nothing in this section allows the
department to recover investigative costs for an administrative
licensing action or any action that has not been filed in a court of
law.
   (c) Any person or entity responsible for investigative costs under
this section shall be allowed to audit the department's
investigative costs.  The audit must be performed by a third-party
certified public accountant and paid for by the person or entity
requesting the audit.  The department shall promulgate regulations to
implement this subdivision by June 1, 2002.
  SEC. 10.  Section 56652 of the Food and Agricultural Code is
amended to read:
   56652.  (a) Any person that violates any provision of this chapter
is liable civilly in the sum of five hundred dollars ($500) for each
and every violation.  Such sum shall be recovered in an action by
the director in any court of competent jurisdiction.  All sums which
are recovered pursuant to this section shall be deposited in the
State Treasury to the credit of the Department of Agriculture Fund.
   (b) In a violation of the offense described in subdivision (a),
the department may recover investigative costs, excluding attorneys'
fees and administrative overhead, for those charges where there has
been a conviction in a court of law, or a  court-supervised
settlement has been reached.  Nothing in this section allows the
department to recover investigative costs for an administrative
licensing action or any action that has not been filed in a court of
law.
   (c) Any person or entity responsible for investigative costs under
this section shall be allowed to audit the department's
investigative costs.  The audit must be performed by a third-party
certified public accountant and paid for by the person or entity
requesting the audit.  The department shall promulgate regulations to
implement this subdivision by June 1, 2002.
  SEC. 10.5.  Section 56652 of the Food and Agricultural Code is
amended to read:
   56652.  (a) Any person that violates any provision of this chapter
is liable civilly in the sum of not less than five hundred dollars
($500) or more than one thousand dollars ($1,000) for each and every
violation.  This sum shall be recovered in an action by the secretary
in any court of competent jurisdiction.  All sums which are
recovered pursuant to this section shall be deposited in the State
Treasury to the credit of the Department of Food and Agriculture
Fund.
   (b) For a violation of the offense described in subdivision (a),
the department may recover investigative costs, excluding attorneys'
fees and administrative overhead, for those charges where there has
been a conviction in a court of law, or a  court-supervised
settlement has been reached.  Nothing in this section allows the
department to recover investigative costs for an administrative
licensing action or any action that has not been filed in a court of
law.
   (c) Any person or entity responsible for investigative costs under
this section shall be allowed to audit the department's
investigative costs.  The audit must be performed by a third-party
certified public accountant and paid for by the person or entity
requesting the audit.  The department shall promulgate regulations to
implement this subdivision by June 1, 2002.
  SEC. 11.  Section 4.5 of this bill incorporates amendments to
Section 59901 of the Food and Agricultural Code proposed by both this
bill and AB 2630.  It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2001, (2)
each bill amends Section 55901 of the Food and Agricultural Code, and
(3) this bill is enacted after AB 2630, in which case Section 4 of
this bill shall not become operative.
  SEC. 12.  Section 5.5 of this bill incorporates amendments to
Section 55922 of the Food and Agricultural Code proposed by both this
bill and AB 2630.  It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2001, (2)
each bill amends Section 55922 of the Food and Agricultural Code, and
(3) this bill is enacted after AB 2630, in which case Section 5 of
this bill shall not become operative.
  SEC. 13.  Section 9.5 of this bill incorporates amendments to
Section 56631 of the Food and Agricultural Code proposed by both this
bill and AB 2630.  It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2001, (2)
each bill amends Section 56631 of the Food and Agricultural Code, and
(3) this bill is enacted after AB 2630, in which case Section 9 of
this bill shall not become operative.
  SEC. 14.  Section 10.5 of this bill incorporates amendments to
Section 56652 of the Food and Agricultural Code proposed by both this
bill and AB 2630.  It shall only become operative if (1) both bills
are enacted and become effective on or before January 1, 2001, (2)
each bill amends Section 56652 of the Food and Agricultural Code, and
(3) this bill is enacted after AB 2630, in which case Section 10 of
this bill shall not become operative.
  SEC. 15.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because the
only costs that may be incurred by a local agency or school district
will be incurred because this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIIIB of the California Constitution.
